The G20 leaders met in Toronto, Canada on 26 and 27 June for the fourth in a series of G20 Summits convened to address the global financial crisis.
The unprecedented global coordination from earlier G20 days appears to
be under strain
and pragmatic compromises
are evident.
The G20 leaders reiterated that their highest priorities are to:
- Safeguard and strengthen the recovery
- Set a foundation for strong, sustainable and balanced growth
- Strengthen financial systems against risks
At this point, however, after three summits and multiple G20 commitments, the unprecedented global coordination from earlier G20 days appears to be under strain and pragmatic compromises are evident.
At the close of the Toronto Summit, the G20 leaders acknowledged that a range of different approaches were necessary to promote and strengthen economic growth and, while they reconfirmed agreement on measures to reform and strengthen the financial system, here too national undertones were apparent.
The framework for strong, sustainable and balanced growth
Due to the recent and ongoing stress on economies and public finances globally, the focus of the Toronto Summit was on the fiscal side.
The G20 sought to balance calls for spending cuts with calls for continued stimulus.
While the G20 had been able to align economic stimulus measures in the midst of the financial crisis, its ability to coordinate fiscal policy in the post-crisis environment is proving harder.
So, while the G20 reiterated its commitment to taking concerted actions to sustain the global recovery, in the end, it also acknowledged the need for these measures to be tailored to national circumstances.
